System and process for creating, monitoring, and transforming multiple interests of one or more issuer entities at system determined intervals based on a variable or index

Abstract

The disclosed embodiments relate to information systems and to real-time processes residing on a computer system. More specifically, the disclosed embodiments relate to systems and methods for creating, monitoring, processing, and transforming the beneficial interests of one or more entities which issue two or more offsetting claim interests which are linked to changes in an endogenous or exogenous variable or index. Such offsetting interest claims will be subject to transformation by the system where system transformations will modify the relative entitlements.

Description

BACKGROUND[0001]1. Field of Disclosure[0002]The disclosed embodiments relate to electronic trading of funds, electronic funds management, and real-time fund processing systems.[0003]2. Background of the Disclosure[0004]The financial industry utilizes various tools to assist it in tracking and reacting to changes in the market such as changes in index, asset, share / claim counts, prices, returns and the like. Some of these tools include specialized computer based systems to assist in performing various tasks. To date, however, these systems have had many draw backs and disadvantages despite some advantages they provide.[0005]For example, U.S. Pat. No. 5,987,435 to Weiss et al discloses a proxy asset data processor. The disclosed data processing system manages and implements a form of trading security designated as a proxy asset. Proxy assets according to the '435 patent purportedly provides a sophisticated risk management capabilities without the complexities associated with other typ...

AI Technical Summary

Benefits of technology

The invention creates a closed environment where participants can hold or trade interests linked to variables and indices that are currently unavailable on conventional financial exchanges. This simplifies or eliminates complex curve valuations and excess asset trading, which can be complicated when dealing with markets like commodities and metals. Overall, the system creates a more efficient and organized market for these assets.

Problems solved by technology

To date, however, these systems have had many draw backs and disadvantages despite some advantages they provide.

The '435 patent and the '020 patent are limited to operation over proxy assets; and limited to the transformation of “illiquid assets or claims” into tradable instruments.

However, there are still draw backs with these systems and other similar systems in the art.

For example, none of these financial systems address the needs of a system with transformations of interests, having no asset segregation, real time market monitoring of system (intrinsic) values with realized real-time market trading values, and automated system responsiveness to alter the transformations in response to real-time monitoring.

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